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CITY OF CRESCENT CITY SPECIAL CITY COUNCIL MEETING PDF Free Download

CITY OF CRESCENT CITY SPECIAL CITY COUNCIL MEETING PDF free Download. Think more deeply and widely.

1 | P a g e
6/30/22 COUNCIL AGENDA
CITY OF CRESCENT CITY
Mayor Jason Greenough Mayor Pro Tem Isaiah Wright
Council Member Raymond Altman Council Member Beau Smith
Council Member Blake Inscore
THURSDAY JUNE 30, 2022 6:15 P.M.
ZOOM PHONE NUMBER: (253) 215-8782
ZOOM WEBINAR ID: 829 9559 7366
MUTE / UNMUTE PRESS *6
RAISE HAND PRESS *9
The public may access and participate in the public meeting using one or more of the following
methods:
1) Attend the meeting in person, public comment at the podium will be allowed.
2) Participate live online via Zoom (details below) or by utilizing the link to join the meeting
posted on both the City of Crescent City – City Hall Facebook page and the City of
Crescent City website (www.crescentcity.org), public comment may be made by using the
raise hand feature on Zoom;
3) Watch the meeting via livestream on YouTube (channel: City of Crescent City, California),
public comment may be made by calling in to the meeting using the Zoom phone number;
4) Public comments may be made in advance by submitting written comment via
publiccomment@crescentcity.org or by filing it with the City Clerk at 377 J Street, Crescent
City, California, 95531. All public comments (via email or mail) must be received by the
City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and
agenda item to which your comment pertains in the subject line. Public comments so
received will be forwarded to the City Council and posted on the website next to the
agenda. Written public comments will not be read aloud during the meeting.
Notice regarding Americans with Disabilities Act: In compliance with the Americans with
Disabilities Act, if you need special assistance to participate in the meeting, please contact the
City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable
the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-
35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full
agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website:
www.crescentcity.org
OPEN SESSION
Call to order
Roll call
Pledge of Allegiance
CRESCENT CITY, CA 95531
255 WASHINGTON BLVD
CRESCENT FIRE
PROTECTION DISTRICT OFFICE
SPECIAL
CITY COUNCIL MEETING
AGENDA
2 | P a g e
6/30/22 COUNCIL AGENDA
PUBLIC COMMENT PERIOD
Any member of the audience is invited to address the City Council on any matter that is within the
jurisdiction of the City of Crescent City. Comments of public interest or on matters appearing on
the agenda are accepted. Note, however, that the Council is not able to undertake extended
discussion or act on non-agendized items. Such items can be referred to staff for appropriate
action, which may include placement on a future agenda. All comments shall be directed toward
the entire Council. Any comments that are not at the microphone are out of order and will not be
a part of the public record. After receiving recognition from the Mayor, please state your name
and city or county residency for the record. Public comment is limited to three (3) minutes. The
public is additionally allotted three minutes each in which to speak on any item on the agenda
prior to any action taken by the Council.
CEREMONIAL ITEMS
1. Oath of Office for Police Officer Owen
CONSENT CALENDAR
2. MOU with Family Resource Center of the Redwoods Regarding Edible Food Recovery
Program (SB 1383)
• Recommendation: Approve and authorize the City Manager to sign a Memorandum of
Understanding Between the City of Crescent City and the Family Resource Center of
the Redwoods Regarding Implementation of SB 1383 Regulations Edible Food
Recovery Program
NEW BUSINESS
3. Val Polyanin Artwork Donation
• Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Direct staff to take one or more of the following actions:
o Accept the donated art
o House the artwork in the Bank of America building while staff seek out a
permanent home(s)for the collection
o Develop a short-term plan that addresses the budgetary considerations for
housing and exhibiting the work of Val Polyanin during monthly First Friday
events and other times as directed, and a timeframe for finding a permanent
home
o Develop a long-term plan that addresses the budgetary considerations and
economic benefits of retaining a portion of the work to be displayed on a
consistent basis, potential tourism opportunities and indirect benefits of having
the art exhibited in the community and a permanent solution for preserving and
housing the remaining pieces of work
CITY COUNCIL ITEMS
➢ Legislative Matters – Consider miscellaneous legislative matters pertinent to the City of
Crescent City. Authorize the Mayor to sign the appropriate letters and/or positions with
respect to such matters.
3 | P a g e
6/30/22 COUNCIL AGENDA
Vision:
The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents,
businesses and visitors through leadership, diversity, and teamwork.
Mission:
The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we
serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our
diverse history, culture and unique natural resources.
Values:
Accountability
Honesty & Integrity
Excellent Customer Service
Effective & Active Communication
Teamwork
Fiscally Responsible
City Clerk/Administrative Analyst
/s/ Robin
Altman
June
28,
2022
POSTED:
Monday,
July
5, 2022
at
6:00 p.m.
in the
Flynn Center, 981 H Street,
Crescent City, CA 95531.
Adjourn
to
the
regular
meeting
of
the
City
Council
of
the
City
of
Crescent
City
scheduled
for
ADJOURNMENT
staff or take action to have staff place a matter of business on a future agenda.
reports on their own activities. They may ask questions for clarification, make a referral to
Gov’t Code § 54954.2(a), City Council Members may make brief announcements or brief
➢
Reports, Concerns, Referrals, Council travel and training reports
–
In accordance with
by any member present shall be considered an order of the City Council.)
of the City
Manager. (Directives from individual Council Members that are not
objected to
to the administrative services of the
City and provide direction with
respect to subordinates
Code
§
2.08.200, the City Council may instruct the city manager on matters of importance
➢
City Manager Report and City Council Directives
–
Pursuant to Crescent City Municipal
CITY OF CRESCENT CITY
Oath or Affirmation of Allegiance for Public Officers and Employees
The Execution of this Oath is Required by Article 20, Section 3, of the Constitution of the State of California,
I, Wade Allen Ironwing Owen, do solemnly swear that I will support and defend the Constitution of the United States and the Constitution
of the State of California against all enemies, foreign and domestic; that I will bear true and faithful allegiance to the Constitution of the
United States and to the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose
of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter for the Crescent City Police Department.
Wade Allen Ironwing Owen, Police Officer _____________________________________________
NAME AND TITLE OF PUBLIC OFFICER/EMPLOYEE SIGNATURE OF PUBLIC OFFICER/EMPLOYEE
Subscribed and sworn to before me this 30th day of June, 2022.
____ Robin Altman, City Clerk ______________________________________________
NAME AND TITLE OF OFFICER ADMINISTERING OATH SIGNATURE OF OFFICER ADMINISTERING OATH
1
CITY COUNCIL AGENDA REPORT
TO: MAYOR GREENOUGH AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: MARTHA D. RICE, CITY ATTORNEY
DATE: JUNE 30, 2022
SUBJECT: MOU WITH FAMILY RESOURCE CENTER OF THE REDWOODS
REGARDING EDIBLE FOOD RECOVERY PROGRAM (SB 1383)
______________________________________________________________________
RECOMMENDATION
• Approve and authorize the City Manager to sign a Memorandum of
Understanding Between the City of Crescent City and the Family Resource
Center of the Redwoods Regarding Implementation of SB 1383 Regulations –
Edible Food Recovery Program
BACKGROUND
CalRecycle’s final SB 1383 Regulations place a variety of mandatory activities and
programs upon local governments in an effort to reduce organic waste by 50 percent from
its 2014 baseline level by 2020 and 75 percent by 2025. The regulations require the City,
among other things, to implement an edible food recovery program, conduct capacity
planning for edible food recovery, conduct inspections, enforcement, recordkeeping, and
reporting to CalRecycle in compliance with SB 1383 Regulations. The City may designate
a public or private entity to fulfill its responsibilities of the requirements of the SB 1383
Regulations through an agreement, except that the jurisdictions will remain ultimately
responsible for compliance in accordance with Section 18981.2 (c) of the regulations.
The Del Norte and Tribal Lands Community Food Council of the Family Resource Center
of the Redwoods is the agency doing edible food recovery and redistribution in Del Norte
County. Mary Pitto, a Del Norte Solid Waste Management Authority consultant, has
developed an MOU with the FRCR to provide an edible food recovery program in
satisfaction of the City’s responsibilities under the SB 1383 Regulations.
ITEM ANALYSIS
The proposed memorandum of understanding (MOU) the tasks and responsibilities for
the parties are outlined as follows.
2
FRCR MOU FOR EDIBLE FOOD RECOVERY PROGRAM
JUNE 30, 2022
2
City Responsibilities
• Ultimately responsibility for implementation of an edible food recovery program in
compliance with Article 10 commencing with Section 18991.1,
• Identify Tier 1 and Tier 2 Edible Food Generators located within the City and report
those generators to FRCR,
• Notify each Tier 1 (commencing January 1, 2022) and Tier 2 (commencing January
1, 2024) commercial edible food generator of their requirements as identified in
Section 18991.3, in coordination with the Regional Agency (Del Norte Solid Waste
Management Authority),
• City LEA (County Health Dept.) will conduct compliance inspections of edible food
generators and food recovery services and organizations and report to the County,
• Submit required inspection records to the Regional Agency.
FRCR Responsibilities
• Comply with edible food recovery program recordkeeping requirements,
• Provide information to each commercial edible food generator about the food that
has been recovered,
• Retain all records for 5 years,
• Report any Tier 1 or Tier 2 commercial edible food generators that do not have a
written contract or agreement to the City, and
• Submit records to the City and the Regional Agency.
In order to allow for the preparation of alternative services, the termination of this MOU
requires 180 days’ advance notice.
FISCAL ANALYSIS
The adoption of this MOU will have no direct fiscal impact to the City.
STRATEGIC PLAN ASSESSMENT
GOAL 1: Support quality services, community safety, and health to enhance the quality
of life and experience of our residents and visitors.
D. Provide and maintain an efficient, adequate infrastructure to provide for both
current and future community needs
ATTACHMENTS
1. MOU with Family Resources Center of the Redwoods
CITY COUNCIL AGENDA REPORT
TO: MAYOR GREENOUGH AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: BRIDGET LACEY, GRANTS AND ECONOMIC DEVELOPMENT
COORDINATOR
ASHLEY TAYLOR, ECONOMIC DEVELOPMENT & RECREATION
DIRECTOR
JON OLSON, PUBLIC WORKS DIRECTOR
DATE: JUNE 30, 2022
SUBJECT: VAL POLYANIN ARTWORK DONATION
______________________________________________________________________
RECOMMENDATION
• Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Direct staff to take one or more of the following actions:
o Accept the donated art.
o House the artwork in the Bank of America building while staff seek out
a permanent home(s) for the collection.
o Develop a short-term plan that addresses the budgetary considerations
for housing & exhibiting the work of Val Polyanin, and a timeframe for
finding a permanent home.
o Develop a long-term plan that addresses the budgetary considerations
and economic benefits of retaining a portion of the work to be displayed
on a consistent basis, potential tourism opportunities and indirect
benefits of having the art exhibited in the community, and a permanent
solution for preserving and housing the remaining pieces of work.
BACKGROUND
Local artist, Val Polyanin, gained asylum and immigrated to Crescent City from the
Ukraine during the Cold War and has since dedicated his life to making art in the
community. His gallery space is located across the street from South Beach in an
unexpected collection of converted shipping containers and has been an iconic roadside
attraction for several decades. Val’s works are created from a variety of media, including
painting, sculpture, mosaic, and drawing. The sizes range from tabletop to larger than
human scale and some are made to withstand outdoor elements. His work is well known
3
Val Polyanin Artwork Donation
June 30, 2022
2
in the community and surrounding areas and has been a recognizable and prominent
fixture for frequent travelers passing through Crescent City.
ITEM ANALYSIS
On May 18, 2022, the City was contacted by the Hambro Group and informed that their
tenant, Val Polyanin, had decided to donate all his remaining artwork to the City. There
are a total of four shipping containers currently housing over 500 pieces of art,
representing the artist’s life work. The amount of art is astounding, and the collection itself
is stunningly provocative, unlike anything you would expect to find along the side of the
highway. If the City is to accept this generous offer, all artworks must be removed from
the property in the coming weeks. Multiple City staff members are excited about and
invested in this opportunity and are seeking Council’s overwhelming support for this
incredibly talented artist and long-time community member.
Staff believe that accepting this unique gift of art would be one attainable step towards
recipes “7A: Strategic Art Plan” and “7V: Music and Arts Capital,” found in the Economic
Development Strategic Action Plan, which was adopted in 2021. Instead of developing a
full plan, staff envision a modest proposal with a similar bent that would take advantage
of this unique gift and help the City achieve some of its goals; invest in beautification and
tourism attraction; focus on efforts to enhance downtown.
The long-term goal is to place the work with an art preservationist or gallery that can
properly care for it as a permanent steward. Staff have been in communication with a
team of preservationists at the Kohler Foundation and they have shown interest in
possible restoration, preservation, and placement in one or more museums or galleries.
They typically look for non-profits or educational institutions that have sufficient ongoing
funding to properly display and maintain the art. Kohler’s process, however, is long and
will likely take a year to fund due to the volume of their other ongoing art preservation
work.
A short-term option is to save, honor, and preserve the work of local artist Val Polyanin
while developing the long-term plan for properly storing the work while a home can be
found in the art world for the pieces that the City is unable to retain. The Bank of America
building is an option for storing the art while staff work out a long-term plan with Kohler or
other viable individuals to take ownership of the collection.
Staff further suggest using the Bank of America building as a temporary gallery space to
share portions of the work with the community during events like First Friday or at other
times as directed. The space would provide a new gallery experience for the community,
entice visitors with a one-of-a-kind exhibit, and capitalize on this currently unused space.
If directed, staff will return to Council with a more detailed plan for carrying out the gallery
operations when there is more time for City staff to put a full proposal together. Scope of
work would include modest materials, lighting, marketing, and staffing or other items as
directed by the Council.
Val Polyanin Artwork Donation
June 30, 2022
3
If Council directs staff to accept all or a portion of the art, it will need to be moved. Moving
500+ pieces of art will take a few days with dedicated City forces. If the City decides not
to accept the art, Hambro has expressed their intention to dispose of the work, unless
others intervene.
Interest in Val’s art:
Multiple groups and organizations have expressed interest in the art. Local galleries and
artists are interested in seeing the works displayed and preserved. An accomplished Los
Angeles based artist and commercial photographer is also interested in placing this work
in a gallery in Los Angeles. She will be in town in July and has offered to photograph and
archive the work so that it is properly documented and can be easily shopped around to
other galleries. Another local resident has taken drone footage of the art in its current
location to further document the process of acquiring the art and telling this story as it
unfolds. The Kohler Foundation Inc., which works exclusively in art preservation, has
seen portions of the art and noted that it is worth being preserved. All of these services
have been offered at no cost to the City.
As a Ukrainian artist who chose to make Crescent City his home after living for many
years under communist rule and sought asylum in the USA, Val has a story to tell through
his art. Some City staff members are very passionate about saving this artist’s work and
instead elevating it from a storage container along highway 101 to a proper exhibition
space, giving the City a story to tell. These stories are just another example of what makes
this community interesting and adds value to the art. Much of what makes art so powerful
is how it can unite people. The arts can celebrate our differences while connecting us
through shared experiences and this artwork can do just that. If the Council directs staff
to accept the art as a donation and develop a plan, the City will share this art experience
with the community and visitors alike.
Options:
1. Refuse to accept the donation.
2. Accept some portion of the art and leave the remainder to be disposed of by Hambro.
This could be a selection of any number of works to be selected by staff for display in
the Cultural Center or other City locations.
3. Accept all the art.
FISCAL ANALYSIS
There are no costs associated with rejection of the gift of art.
There are nominal costs associated with accepting the art and housing it at the former
Bank of America building while finding a permanent home for the work. The primary
Val Polyanin Artwork Donation
June 30, 2022
4
expenses would be the power bill for the building and staff time spent moving the art,
developing the plan, and establishing a long-term steward.
An enhancement to the storage option is that the City Council could establish a budget
and direct staff to develop a more detailed plan. There would be additional costs, to be
determined, if City staff was directed to develop a plan to create and operate a gallery
space for First Friday, other events, or on an ongoing basis. A portion of the expenses
could potentially be offset by donations or fees charged during exhibitions or pieces of art
being sold or auctioned. The City could use the profits to offset costs or for any other
general fund purpose such as the renovations of new City Hall or funding of future Public
art projects. The downtown, Beachfront Park, and Front Street all have dedicated spaces
that have been identified in past Master Plans for the placement of Public Art, however
this important public art component has always lacked funding.
An additional benefit to receiving this art is that it has the potential to be a long-term
economic driver for Crescent City, as showcased in other towns across the country. In
Wilson, North Carolina, a park & museum was developed in their historic downtown,
dedicated to the work of artist Vollis Simpson. This artist’s collection of kinetic sculptures
called “whirligigs” became a major tourist attraction and gathering place for community
members. The non-profit running the exhibit conducted an economic impact study to
measure the economic and community benefit of the park. The results of the study were
overwhelmingly positive and found that the properties surrounding the park had increased
in value by 36% while the property values in the City of Wilson as a whole remained flat
during that same time period. The park regularly welcomed visitors from around the globe
and those visitors infused over $3 Million into the local Wilson County economy annually.
This is one example of how the ongoing exhibition of a retained portion of the art in a
permanent location could be the catalyst for increased tourism to the area and a hallmark
attraction for the City of Crescent City. In conjunction with current efforts to market
Crescent City as a tourist destination, this art, along with its story, could attract individuals
who may not have otherwise been reached and have direct and indirect economic
benefits throughout the City.
STRATEGIC PLAN ASSESSMENT
This action is consistent with the following 2016 Strategic Plan Goals:
• Goal 1: Support quality services, community safety, and health to enhance the
quality of life and experience of our residents and visitors.
• Goal 2: Promote a thriving local economy.
• Goal 3: Obtain the highest levels of organizational excellence.
ATTACHMENTS
1. Letter of Intention to Donate
2. Photos of artwork
3. Case Study Report for Wilson, NC
Vollis!Simpson!Whirligig!Park!Economic!Impact!Report
Written!by!Economic!Leadership,!LLC!
June!2020!
TABLE OF CONTENTS
Executive Summary 1
Park Overview 2
Economic Impact Methodology 2
Economic Impacts of Whirligig Park 6
Real Estate Impacts of Whirligig Park 11
Community Impact Benefits 22
Conclusion 23
1
Vollis Simpson Whirligig Park Economic Impact Report
Executive Summary
The Vollis Simpson Whirligig Park is a unique art park located in
the heart of downtown Wilson, North Carolina. The park has
been open for over two years and the City of Wilson was
interested in understanding its economic impacts to the Wilson
community. Economic Leadership LLC, out of Raleigh, North
Carolina, was hired to estimate the economic and community
benefits of the park.
The economic impacts were estimated by calculating the out-of-region tourist spending, the
change in property taxes collected, and the operational efforts to run and maintain the park. An
estimated 13,270 groups (about 40,000 visitors) visit the park from outside the region
annually. These visitors along with the operational and property tax benefits contribute $2.5
million in sales to Wilson County annually. After accounting for the multiplier effect, this value
grows to a total of $3.4 million in sales.
Total Annual Economic Impacts of Whirligig Park
Type of Impact
Initial
Direct, Indirect, &
Induced
Total
Sales
$2,451,000
$914,000
$3,365,000
Earnings
$736,000
$366,000
$1,102,000
Jobs
27
7
35
The park is responsible for adding over $1.1 million in income earnings to Wilson County
as well as 35 full-time jobs. Most of this income generation comes from the tourism impacts,
which accounts for about 68 percent of the total income benefits. The operational and property
value impacts account for 19 and 13 percent of income generated, respectively. This report
focuses on the income impacts as sales dollars are more likely to leave the county than income
dollars.
The report also includes an in-depth analysis of the impact of the park on real estate in the
downtown area adjacent to the park. A review of property values found the Whirligig Park
study area experienced a gain of more than $17.9 million in assessed real estate values
over a 10-year period. These rising real estate values have thus resulted in an annual tax
revenue increase of $234,190 for the city and county of Wilson.
Commercial real estate brokers and property owners revealed the opening of the park has
helped spark a renaissance in downtown Wilson. Lease rates for retail and office space have
risen sharply over the last two years, creating an active market with lower vacancy.
Benefits to the local community from the park were also measured. Access to the park and the
many events hosted on site creates an annual value of $996,000 in direct use benefits. The
local community has also increased its social engagement and social capital through the
nonprofits that support the park to the tune of $371,000 of investment annually. The research for
this report was conducted in early 2020, an addendum discussing the potential impacts of the
coronavirus pandemic is included at the end of this report.
2
Park Overview
The community of Wilson, North Carolina banded together to create a truly unique art park in
the heart of downtown. The Vollis Simpson Whirligig Park opened in November 2017. The two-
acre park is home to thirty of the artist’s world-renowned whirligigs. Simpson began creating the
whirligigs, a form of kinetic windmill sculptures, on his property in Wilson County during the
1980s. Soon he amassed a collection that enticed people to come to his farm to see the
whirligigs. Over time, Simpson’s work was recognized in the greater art world with pieces
commissioned in many locations, such as Baltimore and New York. As the rise of the Internet
spread information about this unique cultural experience, visitors began flocking to Simpson’s
property. The farm soon became the county’s top tourist destination.
As Simpson aged and the whirligigs began to suffer from disrepair, the greater Wilson
community came together to bring the whirligigs from the Simpson farm into downtown Wilson
to be the centerpiece of a new community park. The park concept was announced in 2010. The
Vollis Simpson Whirligig Park and Museum is a public-private partnership between the Vollis
Simpson Whirligig Park and Museum non-profit and the City of Wilson. The goals of the park
are to highlight a local cultural asset and create a community gathering space while generating
vibrancy and economic activity in the downtown area.
After a massive effort to move, conserve, and install
the whirligigs at the newly developed park site, the
park opened in late 2017.
Since the opening, visitor traffic has been strong and
the momentum of downtown revitalization is
increasing. Given this activity, the Vollis Simpson
Whirligig Park and Museum and the City of Wilson
was interested in understanding the economic
impacts derived from the park. Economic Leadership
LLC, out of Raleigh, North Carolina, was hired to
estimate the economic benefits of the park. The
surveying for this report was conducted in 2019 and
the economic analysis was completed in early 2020. After the completion of the final draft of this
study, the world changed dramatically with the onset of the coronavirus pandemic. The potential
impacts of the pandemic and ensuing economic slow-down are discussed in an addendum at
the end of this report.
Economic Impact Methdology
This report reviews the economic and community benefits of the Vollis Simpson Whirligig Park,
hereby referred to as “the park” to Wilson County, North Carolina. The majority of the report will
focus on the economic benefits of the park. Conducting an economic impact analysis, or EIA, for
a city park (rather than, say, the addition of one new business) contains opportunities for
multiple economic stimuli, such as increased home values, and community benefits, like
increased social capital.
Economic Leadership LLC reviewed the literature of tangible benefits of city parks and made
their determination based on previous EIA experience and the Trust for Public Land’s
recommendations in “Measuring the Economic Value of a City Park System.” In some city
3
parks, health and environmental benefits such as exercise, stormwater management, and air
pollution reduction are included in economic impact analyses. Given the park’s relatively small
physical footprint we chose not to include these benefits although this park surely brings some
of these benefits on a smaller scale. Additionally, Economic Leadership LLC provided an
assessment of the benefits to the community brought by the park. While these benefits are not
direct economic stimulus, they are measurable benefits of the park.
Whirligig Park Economic Impact Methodology
In order to quantify as economic impact, the spending being measured must be considered new
to the community. Given that the study region is Wilson County, it is assumed that Wilson
County residents are already spending their disposable income within the county. When a
county resident goes and visits the park and buys a beer at the nearby brewery, that is
considered money they would have spent in the county regardless of the park. However, if a
couple travels from Raleigh to see the park and they walk over to the brewery afterwards, that
money is considered a new economic stimulus to the study region.
Under this methodology, we calculated the economic impact based on the out-of-region tourist
spending, the change in property values attributable to the park, and the operational efforts to
run and maintain the park.
There is some indication that local residents may now be choosing to attend events in Wilson
County because of the park instead of leaving the county for entertainment. The capturing of
this leakage of local spending was not included in this report. This spending could be
considered in future economic impact reports but would require more advanced surveying data
to understand local residents spending patterns before and after the creation of the park.
Tax
Revenue
Earnings
Jobs
Sales
Tourism
Real
Estate
Operations
Economic
Whirligig Park
Impacts
Community
Community
Cohesion
Direct Use
Values
Social
Capital
Community
Benefits
4
Economic activity has impacts well beyond the initial transaction. For this study, we
acknowledge that the park creates jobs from the operations and tourist impacts. We also
account for the supply-chain impacts of companies that benefit from the park. If the company
serves park visitors and then makes additional purchases from a local supplier, this will
stimulate additional economic growth in the region. This phenomena in regional economies is
referred to as the multiplier effect.
Multipliers are specific values that measure the ripple or secondary effect of how changes in
one industry can influence the broader economy. Economic Leadership LLC utilized multipliers
for this study from Economic Modeling Specialists International’s (EMSI) licensed software.
EMSI produces a social accounting matrix that determines the linkages in purchasing patterns
between different sectors of the economy. From this matrix, EMSI creates a proprietary
input/output model that can calculate the final equilibrium impacts of a change in a regional
economy. The EMSI input/output model has four types of multiplying effects:
1. Initial – this represents the jobs, revenues, and earnings directly related to the
park’s operations, tourism, or property value impacts.
2. Direct – these impacts are the first round of impacts to the industry’s supply
chain due to new input purchases required by the project.
3. Indirect – these impacts reflect the second round of activity when the supply
chains stimulate sales within their supply chains.
4. Induced – these impacts are the result of increased earnings and therefore
further spending throughout the economy.
For example, a nonprofit entity (the Vollis Simpson Whirligig Park and Museum) was created to
manage the park. The initial impacts are the sales, earnings, and jobs specific to the nonprofit. If
the nonprofit has to hire an outside marketing firm, that would be a direct impact. If the
marketing firm is now able to hire an accounting firm with the increased revenue from the
nonprofit client, the revenue received by the accounting firm would be an indirect impact. The
increase in local spending by these employees from their new or increased earnings are the
Initial Direct Indirect Induced
Total
Economic
Impact
5
induced impacts. EMSI’s input/output model estimates multipliers for sales, earnings, and jobs
for each 6-digit NAICS industry code. The following chart displays the job multipliers for the
industry categories used in this study.
Wilson County Industry Multipliers
Industry
Sales
Earnings
Jobs
Civic and Social Organizations
1.33
1.24
1.13
Local Government, Excluding Education and Hospitals
1.52
2.19
2.35
Full-Service Restaurants
1.31
1.28
1.14
Hotels (except Casino Hotels) and Motels
1.34
1.41
1.19
Gasoline Stations with Convenience Stores
1.39
1.59
1.36
Source: EMSI 2019.4
The differing multipliers demonstrate how a change in one industry can be more or less
impactful than a change in another industry. In Wilson County, for the local government sector
the total job multiplier is 2.35, meaning that adding one job in local government can create or
support 1.35 jobs elsewhere in Wilson County. Hotels have a lower multiplying effect on the
economy with a jobs multiplier of 1.19. Higher wages are often an indicator of which industries
provide the highest multiplying effect. Greater earnings received translates into more regional
spending and thus a higher induced impact.
The critical component of an economic impact assessment is determining accurate data on the
initial impacts of a project. To assess the initial impacts accurately, Economic Leadership LLC
relied heavily on data provided by the City of Wilson and the nonprofit that manages the park.
In-person visitor counting and surveying was also conducted by the Economic Leadership LLC
team. EMSI data was also used to provide estimates of average sales per worker and earnings
per worker estimates for each industry. Statewide values were used for these figures. These
ratios were used to determine earnings and initial job impacts in situations where only the
expected initial revenue was provided.
Measuring economic impact using multipliers provides an estimation of potential economic
results. The multipliers used in this study come from EMSI estimates based on 2018 economic
conditions. These are predictions based on certain economic conditions that are always subject
to change. It is impossible to predict how the economy may change in the future. Therefore, the
results represented in this study are based on many underlying assumptions from the first two
years that the park was in operation. These may not be the same conditions for the years to
come and only provide a snapshot of the current annual impacts. While this report does provide
specific figures on revenue and employment, these figures are best taken as a broad
assessment on the magnitude of the park’s impact rather than exact estimations or predictions
for the future.
6
Kids enjoy the open space of the park during an event.
Economic Impacts of the Wilson Whirligig Park
Operations Impacts
Operations impacts relate to the expenditures required for maintenance and upkeep of the park.
Workers who are paid for their work at Whirligig Park then spend a portion of their dollars in the
local community. The park is managed primarily by the nonprofit, Vollis Simpson Park and
Museum. They provided us detailed data of their annual budget. The City of Wilson also invests
staff time and resources on the park’s maintenance and facilities that factor into the operational
impacts. There is a nonprofit entity, the NC Whirligig Festival, which hosts an annual festival in
and around the park every November; a portion of their operations were also included as an
impact of the park.
Many of these entities utilize part-time staff, these were converted to full-time equivalents (FTE)
and all jobs numbers reported here are FTEs. To estimate the initial sales from operations, the
amount of expenses spent within the local region were extrapolated from each group’s budget
data. This information was combined with data on staff and earnings to determine the initial
operations impacts.
7
Operational Economic Impacts of Park
Type of Impact
Initial
Direct, Indirect, &
Induced
Total
Sales
$515,000
$206,000
$721,000
Earnings
$129,000
$79,000
$208,000
Jobs
3
2
5
The entities that manage and utilize the Whirligig Park spend about $515,000 in Wilson County
annually. Initial operational wages amount to $129,000 annually. There are the full-time
equivalent of three jobs that were created just to run the park. Due to the multiplier effect, two
additional jobs are created in Wilson County from this economic activity.
The total economic impacts from the park operations are an increase in income of $208,000 to
the county’s economy. In this report, we will highlight mostly the income effects, as income is
more likely to remain in the region as compared to sales dollars. This is because sales dollars
can leave the region through intermediary costs and transactions.
Tourism Impacts
The park is a tourism draw. Out of region visitors bring new spending to the local economy. This
can be measured by estimating the number of out of region visitors and how much they spend
at local establishments.
Estimating Visitation
Given that the park is free to the public and has multiple entrance points, measuring the number
of annual visitors presents a great challenge. Visitation was grouped into three categories:
event, tour, and regular visitors. The Vollis Simpson Whirligig Park and Museum and the City of
Wilson provided person counts from each event and tour held in 2018 and 2019. These groups
also provided the research team with an average daily regular visitation estimate based on their
experience on the ground.
Information about where visitors were traveling from and how much they spent was derived from
on-site surveys conducted by Economic Leadership LLC, the Vollis Simpson Whirligig Park and
Museum and the City of Wilson across differing seasons, events, weekdays/weekends, and
times of day.
Visitation Data
In addition to daily visitation, the park hosts many events that attract visitors. The park hosts
numerous concerts, weddings, movie screenings, and community gatherings throughout the
year. The Whirligig Festival is the largest event at the park. In 2019, it was estimated that about
40,000 people attended. Park staff tracked the number of people who attended special events
at the park for 2018 and 2019. This data was also included in the tourist impacts, once the
percentage of local attendees was excluded. The benefit of the park and local events to Wilson
County residents is discussed in the Direct Use Values section of the report.
The park also offers tours to visiting groups, community groups, and school field trips. Park staff
provided our team with information about tours from the past two years including whether it was
a school field trip and from where the group had traveled. School field trips, even if traveling
from outside the county, were not included in the economic impacts as it is most likely that there
was no spending at local establishments during the visit to the park.
8
An estimate of annual regular day visitation was also provided to researchers. It was estimated
that 2018 regular visitation averaged about 82 people each day, or 29,750 annual visitors. In
2019, regular visitation increased to 90 visitors per day, or about 32,850 annually.
Total Visitation by Type and Year
Year
Events
Tours
Regular
2018
68,500
570
29,750
2019
61,100
200
32,850
Average
65,000
380
31,300
The average of 2018 and 2019 visitation data was used to provide the data for a ‘typical year’
for the park. These figures were then treated with assumptions based on the survey data to
determine the economic impact of park visitation.
Tourism Assumptions
Over the course of 2019, 429 groups of visitors were interviewed during their visit to the park
either for an event or a regular visit. This data reflects 1,430 visitors to the park last year. As the
chart below demonstrates, visitors were surveyed across a variety of events throughout 2019.
The largest of these was the Whirligig Festival in November. Economic Leadership LLC
conducted surveys on non-event days to gather data on regular visitation.
Survey Count by Total Visitation and Number of Groups
The survey results revealed a difference between where visitors were from based on whether it
was an event, tour, or a regular visitation day. Event attendees were more likely to be from
Wilson County, while regular and tour visitors were more likely coming from outside the region
to see the park. We also noticed the average group size was larger for event attendees than
regular visitors. The average group size for an event was 3.4 people, while a regular visitors and
tour groups averaged 2.5 people. This data was used to refine the raw visitation numbers into a
value of the number of groups that were visiting from outside of the region.
9
Percentage of Park Visitors by Region
Region
Events
Tours
Regular
Wilson County
62%
11%
52%
Elsewhere in NC
31%
63%
34%
Out of State
6%
26%
14%
The survey data was also used to gather information about how much visitors spent in Wilson
County during their visit. The amount of money spent varied whether the visitor was from in
state or out of state and whether or not they were spending the night in the region. The survey
data revealed that only 10 percent of visitors from elsewhere in North Carolina spent the night in
Wilson County. Out of state visitors were more likely to stay overnight at a level of 35 percent.
Overnight or Day Trip Visitation by Region
Region
Elsewhere in NC
Out of State
Overnight
10%
65%
Day Trip
90%
35%
The survey asked tourists how much they were anticipating to spend during their visit. Most said
they anticipated spending food on lunch and maybe gas before they continued back on their
way. Some visitors didn’t even anticipate spending any money in the region during their visit to
the park. Overnight visitors expectedly anticipated higher costs due to hotel room stays. We
decided to take the average of the survey data based on region and overnight stays.
Average Spending in Region by Visitors Per Group
Region
Elsewhere in NC
Out of State
Overnight
$105
$420
Day Trip
$60
$75
Based on input from visitors, we chose the industries that would be most impacted by park
visitors: food establishments, gas stations, and hotels. We developed our own assumptions of
how that spending would be divided among each industry.
Average Spending in Region by Visitors
Region
Food
Gas
Hotel
Overnight
30%
20%
50%
Day Trip
65%
35%
0%
Tourism Results
The raw visitation numbers were converted to the number of groups based on average group
size data gathered from the survey based on event or regular day visitation. Then the
percentage of visitors from Wilson County were removed, also based on event or regular day
visitation. This resulted in a figure of about 13,270 groups visiting the park from outside
the region for events, tours, and regular visitation.
10
Then the number of groups was parsed into day or overnight visitors based on whether they
were from North Carolina or out of the state. The average spending amounts from the survey
were then applied and broken down into spending on food, gas, and hotels.
Initial Economic Impacts from Out of Region Tourists
Industry Name
Sales
Earnings
Jobs
Full-Service Restaurants
$688,500
$275,600
13
Hotels (except Casino Hotels) and Motels
$460,900
$139,200
5
Gasoline Stations with Convenience Stores
$552,000
$127,900
5
Total Initial Impact
$1,701,000
$543,000
23
The result of this analysis finds that out of region visitors spent about $1.7 million in Wilson
County during their visits to the Whirligig Park. This results in an annual increase in income of
$543,000 in the region, and 23 jobs in the region are supported. When the multiplier effects are
accounted for another $210,000 in income is generated for a total of $752,000. The total
employment impact of tourism from the park is 28 full-time jobs.
Tourism Economic Impacts of Park
Type of Impact
Initial
Direct, Indirect, &
Induced
Total
Sales
$1,701,000
$586,000
$2,287,000
Earnings
$543,000
$210,000
$752,000
Jobs
23
5
28
11
Real Estate Impacts
In this section, we look at the Whirligig Park’s contribution to changes in real estate values in
downtown Wilson, and in particular within a study area around the park. We will explore both
quantitative changes (in the assessed value of real estate, and in lease rates for individual
spaces) and qualitative impacts perceived by property owners, real estate professionals, and
others with knowledge of the downtown Wilson market.
Quantitative Impacts
The Whirligig Park study area shown below (outlined in red) is used by Wilson Downtown
Development Corporation staff and was adopted for use in examining changes in real estate for
this project. The study area contains about 340 parcels in close proximity to the park, with the
park itself in the center.
Assessed Property Values
We looked at the changing assessed (tax) values of real estate in this area from 2009 to 2019.
The park project was announced in 2010, and the park opened in November 2017. Wilson
County conducted county-wide revaluation of properties in 2008 and 2016. These often result in
significant changes in property values. Property value data was provided by the Wilson County
Tax Department.
In 2009 – before the Whirligig Park project was announced – the total value of real estate within
the study area was $49.8 million. By 2019, the total assessed value had grown to $67.7 million,
an increase of 36 percent. By comparison, the total assessed value of all real estate within
Wilson’s city limits was virtually unchanged between 2009 and 2019, holding steady at $3.49
billion. Thus, the Whirligig Park study area experienced a gain of more than $17.9 million
in assessed real estate values over a 10-year period, while the city as a whole
experienced no increase.
Change in Property Value Over Time
Area
2009 Total Value
2019 Total Value
Change
Whirligig Park
Study Area
$49,799,290
$67,744,878
+ 36.0%
All Properties within
the City of Wilson
$3,495,399,350
$3,492,869,466
Unchanged
(decline of 7/100ths
of 1 percent)
12
In 2016, while the park was under construction and other investments were being made nearby,
the tax department’s revaluation resulted in a 22.7 percent increase in real estate values within
the Whirligig Park study area. City-wide, values declined by 4.4 percent following the revaluation
process.
Even focusing just on the downtown area of Wilson, the Whirligig Park study area has seen
larger gains in real estate values than the rest of downtown. The downtown has a Municipal
Service District (MSD), a special tax district that has been in place since 1981. The MSD is very
similar in size (containing about 330 parcels) and includes some of the same parcels as the
study area but, does not include the Whirligig Park and many surrounding properties. The two
areas are shown on the map below, with the park study area boundaries in red and the MSD in
yellow.
13
From 2009 to 2019, the downtown MSD saw total real estate values increase from $57.6 million
to $66.9 million. This is a gain of 16.2 percent, compared with a gain of 36 percent in the
Whirligig Park study area.
Area
2009 Total Value
2019 Total Value
Change
Municipal Service District (MSD)
$57,551,296
$66,850,581
+ 16.2%
Whirligig Park Study Area
$49,799,290
$67,744,878
+ 36.0%
Ten years ago, the total value of the study area was 13.5 percent less than the downtown
Municipal Service District. By 2019, the park area had a value 1.3 percent greater than the
MSD. It is probably not accurate to attribute all of these gains to the Whirligig Park, but the
investment in the park likely played a significant role in encouraging other property
improvements.
14
Property Lease Rates
Though it is more difficult to quantify the overall impact, lease rates for commercial space (retail
or office) have also risen significantly. Downtown market experts report that lease rates 10
years ago could be $1 or less per square foot, annually. One investor says that property owners
would offer space rent-free in order to attract tenants to a downtown area that was perceived as
“dead.”
Currently, numerous spaces near the Whirligig Park and elsewhere downtown are able to
command $10 to $12 per square foot annually. More thoroughly renovated spaces can get $14
to $16, and one particularly attractive space has rent exceeding $19 per square foot. Another
local real estate investor states that rents at his building have doubled in the two years since the
Whirligig Park opened – from between $6.00 and $7.50 per square foot to the $12.00 to $15.00
range.
Though not high in comparison with lease rates in the Research Triangle region, commercial
space rates have risen substantially and now indicate a viable commercial space market in the
Whirligig Park study area and throughout downtown. The key result of these rent increases,
according to a commercial real estate broker, is that property owners who renovate buildings
are now able to make a reasonable return on their investments. This is likely to attract additional
investors to downtown Wilson.
Qualitative Impacts
To assess qualitative impacts from the Whirligig Park, we also interviewed seven downtown
property owners and real estate brokers (via in-person and phone interviews), as well as city
and county staff knowledgeable about the park and the downtown area.
Summary Comments
•Overall, property owners refer to the Whirligig Park as a “draw,” a “big deal,” and a major
asset for the downtown and the study area. The adjacent Whirligig Station is a $14.4 million
mixed-use renovation project of a (100,000 sq. ft) square foot building and will include 94
market rate apartments. Together, these major public sector and private sector investments
have had a “huge impact” on activity downtown and have “created a destination.”
•It took major projects such as the Whirligig Park and Whirligig Station (adjacent mixed use
development) to “focus attention” on the downtown and make downtown a center of activity
again.
•Interviewees consistently state that these large projects built “confidence” in downtown as a
place to invest. One property owner knew that Wilson had a beautiful downtown, affordable
prices, and available grant money. Still, they “would not have done” their first redevelopment
project without the positive announcements regarding the Whirligig Park and Whirligig
Station. This property owner started investing downtown in 2016 and is now working on their
third building.
15
•Interviewees believe that the park and
events held there have caused locals to
“revisit” downtown and experience it again
–often for the first time in many years.
Many nearby residents “would never go
downtown” otherwise. Meanwhile, the park
is drawing new visitors with “out-of-state
plates” from “everywhere.” Similarly,
property owners note that investors are a
mix of local residents, those from larger
cities in the Triangle looking for affordable
opportunities, and some from outside the
region and the state.
•Real estate professionals and property
owners would not describe the downtown
real estate markets as “hot” yet, and some
hoped that activity would increase at a
faster rate. However, they see “positive
momentum” and a market that has “picked
up significantly” over the past two to three
years. In addition to seeing “more small
businesses” in general wanting to open
near the Whirligig Park, property owners
note an improvement in the quality of
tenants (in terms of their business
experience, credit worthiness, etc.)
•One Wilson native who completed a downtown building renovation in 2018 describes the
current market as a “state of opportunity” with fewer distressed properties but still offering
affordability and proximity to the Triangle region. A longtime commercial real estate broker in
the region estimates commercial vacancy city-wide (excluding the mall) at just five percent.
Additional Comments
•The public-private partnership that created the park “took the worst-looking spot” downtown
and “made it an asset.” Over the last five years, downtown has gone from “dead to active.”
•Earlier downtown residential projects such as Nash Street Lofts started the turnaround.
Whirligig Park and Whirligig Station have been “major factors” over the past two or three
years.
•Potential tenants talk about the park “in every conversation.” People “want to be close to it.”
Professionals want to be able to walk to amenities like the park, restaurants, brewery, and
coffee shop.
The real estate market is buying into the promise of the
Whirligig Park.
16
• There is not a critical mass of amenities around the park yet. More restaurants and other
attractors are needed. We’re not at the “tipping point” yet.
• The park provides an attractive, well-lit, safe atmosphere. Families with young children will
come downtown (again). The number of events at or around the park is a big plus.
• The Whirligig Park makes downtown “approachable,” and creates a positive public
perception. The park has been a catalyst for change from the image of “sleepy Wilson.”
• The major investments in the Whirligig Park and Whirligig Station gave local investors
confidence to take on smaller projects, and this has attracted investors from outside Wilson.
Together, the downtown improvements have “started turning heads.”
• Regarding the relationship between new development near the Interstates on the edge of
Wilson, and downtown projects: the success of the Whirligig Park probably increases
investor confidence for doing new hotels and restaurants near the Interstates. Meanwhile,
the high lease rates at new developments near I-95 make renovated spaces downtown look
relatively affordable.
• Purchase prices for downtown-area buildings are still affordable, but it is an active market for
investors (especially) as well as owner-occupants. Most recent sales have been between
$15 and $30 per square foot, with a few lower than that and one approaching $50 per
square foot.
The downtown area shows signs of the past as well new residents.
17
• People are getting priced out of the Raleigh
area. We have a good location between
Raleigh and Greenville, with reasonably-
priced housing and business spaces.
• The new Truist (formerly BB&T) building
and proposed new YMCA and new mixed-
use redevelopment of the BB&T towers site
will have major positive impacts for
downtown.
• Small business training at Wilson
Community College is an important asset
for our downtown business community.
Real Estate Impact Conclusions
1. The study area around the Whirligig Park, containing about 340 properties, has a 2019 real
estate assessed (tax) value of $67.7 million. At the current city and county tax rates, this
area contributes $884,071 to the city and county’s revenues annually. This does not include
revenues for the special downtown Municipal Service District (MSD), which some properties
fall within.
2. The Whirligig Park project was announced in 2010 and opened in late 2017. Between 2009
and 2019, the area around the park increased in assessed value by 36 percent, while the
city as a whole experienced no change in the assessed value of real estate. The park study
area’s 2019 assessed value is $17.9 million higher than it would be if the area had also
remained unchanged in value over the 10-year period. The park area’s sharply rising real
estate values have thus resulted in $234,190 higher tax revenues for the city and county of
Wilson in 2019, compared with the unchanged value of the real estate tax base city-wide.
3. The Whirligig Park study area has also increased in value much faster than the rest of the
downtown. While the downtown MSD’s assessed value increased by 16.2 percent from
2009 to 2019, the park study area gained in value by 36 percent.
4. The commercial space lease market downtown was nearly nonexistent 10 years ago. Lease
rates for retail and office space have risen sharply since then and especially over the last
two years since the park opened, creating an active market with low vacancy but still
affordable in relation to the Research Triangle region.
5. Property owners, investors, real estate brokers and others knowledgeable about Wilson’s
downtown universally describe the Whirligig Park as an important “draw,” a major asset, and
a “big deal” for the revitalization of downtown. It has resulted in longtime local residents
experiencing downtown for the first time in many years and has brought in many new visitors
with “out-of-state” license plates from “everywhere.”
The whirligigs have inspired local breweries.
18
6. The public sector and private sector investments at the Whirligig Park, adjacent Whirligig
Station, and smaller projects have “created a destination” and built confidence for others to
invest in Wilson. More than one investor said that they “would not have done” their first
redevelopment project without seeing the major investments made at the Whirligig Park and
Whirligig Station.
7. The number and variety of events at the park, as well as the creation of an attractive, family-
friendly atmosphere, gives downtown Wilson a positive public perception.
Property Tax Economic Impacts
The findings of the real estate impacts generate another type of economic benefit to add to the
model. The increased revenue from property taxes increases the capacity of local government.
This allows local government to increase staffing, host more events, or extend services. This
increased activity generates additional economic activity. To measure the total economic impact
of this activity, the increase in property tax revenue is added to the local government sector. The
local government sector has some of the highest earnings and job multipliers in the study. The
result of the increase in property taxes is the total economic impact of two new jobs in the
Wilson County economy and an increase in income by $142,000.
Property Tax Economic Impacts of Park
Type of Impact
Initial
Direct, Indirect, &
Induced
Total
Sales
$234,000
$122,000
$357,000
Earnings
$65,000
$77,000
$142,000
Jobs
1
1
2
Total Economic Impacts
When the property value impacts are combined with the operational and tourism benefits, we
see that annually there is $2.5 million in economic activity initially derived from the park. As this
spending filters through the economy it grows to a total of $3.4 million in sales.
Total Annual Economic Impacts of Park
Type of Impact
Initial
Direct, Indirect, &
Induced
Total
Sales
$2,451,000
$914,000
$3,365,000
Earnings
$736,000
$366,000
$1,102,000
Jobs
27
7
35
As income is more likely to remain in the region as compared to sales dollars due to
intermediary costs and transactions, we focus on income benefits. Overall, the park is
responsible for adding over $1.1 million in income to Wilson County as well as 35 full-
time jobs. Most of the income generation comes from the tourism impacts, which accounts for
19
about 68 percent of the total income benefits. The operational and property value impacts
account for 19 and 13 percent of income generated, respectively.
Total Income Generated by Impact Type
Tax Impacts
We estimated tax impacts based on the numbers produced through our analysis. This included
property tax, sales tax, occupancy tax, gas tax, and income tax revenue. Not every geographic
unit in our study collects all of these taxes; the chart below shows which jurisdiction collects
each type of revenue. There may be other tax revenues generated from the park, but these are
the revenues that can be estimated based on investment, sales, and earnings data generated
from our model. For estimating tax benefits for North Carolina, we only included economic
activity generated by visitors from outside the state.
Tax Impact by Type and Geography
Type of Impact
North Carolina
Wilson County
City of Wilson
Property Tax
X
X
Sales Tax
X
X
Occupancy Tax
X
Gas Tax
X
Income Tax
X
Property Tax Income
As discussed in the real estate benefits section, the property surrounding the Whirligig Park
increased by 36 percent, while across the city overall property values remained constant. This
Tourism
$752,490
68%
Property Value
$142,000
13%
68%
Operational
$207,900
19%
68%
20
has led to an increase in annual property tax collection of $234,190. Based on the millage rates,
property tax revenue increases breakdown to $131,000 for Wilson County and $103,200 for the
city.
Property Tax Rates
Wilson County
City of Wilson
Total
$0.0073
$0.00575
$0.01305
Sales Tax Income
Both the county and North Carolina have a tax on sold goods in the region. North Carolina has a
4.75 percent sales tax that applies to food and beverage and other tangible personal property
that is purchased. Food purchases were the only applicable spending from the model for sales
tax revenue. Our analysis found that visitors from outside the state spent about $295,000
annually on food. This resulted in $14,000 of revenue to the state in the form of sales tax.
Local sales tax revenue at the county level is taxed at a 2 percent rate in Wilson County.
Visitors that were from outside the county spent about $689,000 annually at eating
establishments. This amounts to a sales tax revenue of $13,800 annually for the county.
Occupancy Tax
Wilson County levies a six percent occupancy tax on hotel sales. Visitors to the Whirligig Park
spent an estimated $460,870 at hotels in the county. This amounts to occupancy tax revenues
of $27,700 annually.
Gas Tax
Gas purchased in the study region is subject only to the North Carolina gasoline tax. The state
charges 0.362 cents per gallon. It was assumed that the average price of gasoline in the area is
$2.14 per gallon based on current averages. The park was responsible for $190,000 in gasoline
spending. Only gasoline purchased by out-of-state park visitors was included in this estimate.
The result is $32,200 in gasoline tax revenue annually for the state coffers.
Income Taxes
The state of North Carolina taxes personal income at a rate of 5.25 percent. Based on our
impact model, we know the anticipated earnings from economic activity derived from the park
and out of state visitors and the ensuing multiplier effect on the economy is about $745,000 in
earnings.
However, not all earnings count as taxable income, so to reduce earnings to taxable income we
used a ratio of average household taxable income from the IRS and the average household
income from the US Census. This amounted to a ratio of 83 percent of earnings counting as
taxable income. This taxable income was applied to a 4.57 percent effective tax rate in North
Carolina estimated by SmartAsset. We estimate about $28,200 in income tax revenue annually
attributable to the park.
Total Tax Impacts
Based on the taxes we have estimated in this analysis, the state of North Carolina would benefit
from about $74,400 in new taxes annually through sales, gas, and income taxes. Wilson County
earns tax revenue of about $172,500 annually. The City of Wilson is also benefiting from
increased property tax revenue of about $103,200 annually. The majority of tax revenue
generated by the park comes from the property taxes generated from the increase in property
21
value in the downtown corridor. Overall, the tax impact of the park is about $350,100 in annual
state and local tax revenue.
Annual Tax Revenue by Geography
Type of Impact
North Carolina
Wilson County
City of Wilson
Total
Property Tax
$131,000
$103,200
$234,200
Sales Tax
$14,000
$13,800
$27,800
Occupancy Tax
$27,700
$27,700
Gas Tax
$32,200
$32,200
Income Tax
$28,200
$28,200
Total
$74,400
$172,500
$103,200
$350,100
Economic Impact Conclusions
1. The park generates new economic activity in Wilson County through three forms: the
operations of the park, tourism spending from park visitors, and increased property values in
the area surrounding the park. Tourism spending is the largest contributor, accounting for 68
percent of the total economic impacts.
2. The Whirligig Park regular visitation averages about 86 people per day, 41 out of the total
are estimated to be out-of-region visitors. The remaining 45 of the daily average come from
within Wilson County.
3. Visitor spending varies based on the length of trip and length of time traveled, according to
surveys the average spending for an out-of-region visitor averaged between $60 - $420
spent within Wilson County.
4. When the three types of new economic activity are added together and their multiplying
effect is analyzed, the resulting impact on the economy is an addition of $1.1 million in
earnings and 35 jobs.
5. The park also generates tax revenue through property, sales, gas, occupancy, and income
taxes. Annually it is estimated that over $350,000 is generated for the state of North
Carolina, Wilson County, and City of Wilson.
22
Community Impact Benefits
Direct Use Values
While the majority of this report focuses on the economic impacts of the park, primarily
generated by visitors from outside the local region, the park does provide services and value for
local users. This value provided to visitors can be measured using an economic concept called
willingness-to-pay (WTP). The theory of direct use values surmises that if the park was not
available then users would be willing to pay for that same service at a private entity. This WTP
value accounts then for the savings the park provides users. According to The Trust for Public
Land:
“While some might claim that direct use value is not as ‘real’ as tax or tourism revenue, it
nevertheless has true meaning. Certainly, not all park activities would take place if they had to
be purchased. On the other hand, city dwellers do get pleasure and satisfaction from their use
of the parks. If they had to pay and if they consequently reduced some of this use, they would
be materially “poorer” from not doing some of the things they enjoy.”
To help determine these WTP values, the US Army Corps of Engineers has quantified average
benefits for activities associated with parks. This value is then applied by the number of
participants in each park activity (general park use, concerts, etc.) to determine the total direct
use values. Based on the event, tour, and regular attendance number of local residents, the
park generates over $996,200 annually in direct use value for local visitors.
Direct Use Value by Activity
Type of Activity
Person Visits
Average Value Per
Visit
Direct Use Value
General Use
16,425
$6.21
$102,000
Special Events
40,627
$22.01
$894,200
Total
57,052
$996,200
Source: EL estimates based on USACE (2018)
Community Cohesion
Many stakeholders have come together to create and sustain the Whirligig Park. This
community cohesion leads to a “stronger, safer, and more successful” region according to the
Trust for Public Lands. While it is not possible to fully measure the value of all the social capital
generated through the park, some aspects can be measured. The number of members in any
‘friends of the park’ groups, any time they’ve volunteered, and their financial contributions can
all provide a proxy for the community cohesion generated from the park.
In Wilson County, community members have come together to form groups that support the
park and museum. Each entity provided the researchers with data on their financial
contributions, number of volunteers, and hours volunteered. We cataloged this data and
estimated the value of a volunteer’s time based on data from Independent Sector.
23
Community Cohesion by Group
Group Name
Number of
Volunteers
Donations
Volunteer
Hours
Value of
Volunteer
Hours
Total
Friends of the Whirligigs
75
$55,000
--
--
$55,000
Gig360
40
$10,000
300
$7,300
$17,300
Whirligirls
20
$25,000
--
--
$25,000
Whirligig Festival - Board of
Directors and Committees
33
ND
6,750
$163,300
$163,300
Whirligig Festival
200
ND
600
$14,500
$14,500
Park & Museum Board of
Directors and Committees
25
$85,000
450
$10,900
$95,900
Total
393
$175,000
8,100
$196,000
$371,000
ND = Not disclosed to researchers
As a result, the community cohesion benefits to the local region can measured at a value of
$371,000 annually.
Community Impact Conclusions
1. The park has tangible benefits for community members who utilize and engage with the
park. While these do not count as new economic stimulus, these benefits can be quantified.
2. Local users benefit from regular visitiation and the special events hosted at the park. Based
on the cost of these services in the private market, the direct use benefits of the park are
almost $1 million annually.
3. The park generates social capital and engages the public through the groups that support
the park financially and with their time. The annual benefits of this community cohesion are
valued at $371,000 annually.
Conclusion
The Vollis Simpson Whirligig Park brings benefits to the community and the local economy. For
the first time since the park opened in November 2017, the extent of this impact was been
measured. Economic benefits have come in the form of out-of-region visitors spending money at
local establishments, new operational jobs, and increased activity and property values in the
nearby downtown corridor. These economic impacts add over $1.1 million in income to
Wilson County annually and support 35 full-time local jobs. This increase in activity has
also added to tax revenue for the state, county, and city.
The local community has also benefitted from access to a free art park. The City of Wilson and
the Park and Museum nonprofit have also increased the benefits to the local community by
hosting well-attended and engaging events throughout the year. This local energy is measured
in $996,200 of direct use values and $371,000 worth of social capital.
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The park’s impact is still in the beginning stages, particularly when it comes to improving the
downtown area. With the museum opening a gift shop soon in the Whirligig Station, there may
be more opportunities to connect with visitors on a regular basis. Community benefits should
increase as the Whirligig Station apartments fill to capacity and more locals use and support the
park. Some of the economic acitivty generated by the park is expected to be threatened during
the COVID-19 outbreak and economic slowdown. The potential impacts of this event are
discussed in the addendum at the end of this report.
Follow-up analysis would be beneficial, and many aspects of this analysis are likely to increase
in scale. The key to measuring the economic impact for now and the future will be finding ways
to measure visitation, where those visitors are coming from, and how much they are spending in
the region. Another measure of economic benefit that could be included in the future is the
capturing of reduced leakage from local residents. Local officials note there is some indication
that residents may now be choosing to attend events in Wilson County because of the park
rather than leaving the county. The capturing this activity would require more advanced
surveying work to understand local residents spending patterns before and after the creation of
the park.
Many community members have donated their time and money to help the Whirligig Park.
This report and analysis was written by Ted Abernathy, Sara Casey, and Greg Payne of
Economic Leadership LLC.
25
Sources:
Economic Modeling Specialists International (EMSI). 2019. “EMSI Class of Worker 2019.4.”
Developer Tool.
Independent Sector. 2018. “Value of Volunteer Time by State.”
https://independentsector.org/resource/vovt_details/
SmartAsset. 2019. “North Carolina Income Tax Calculator.”
https://smartasset.com/taxes/north-carolina-tax-calculator
The Motley Fool. 2017. ‘Revealed: The Average American's Taxable Income, and Why It Could
Fall in 2017.” https://www.fool.com/retirement/2017/02/06/revealed-the-average-
americans-taxable-income-and.aspx
The Trust for Public Land. 2009. “Measuring the Economic Value of a City Park System.”
http://cloud.tpl.org/pubs/ccpe-econvalueparks-rpt.pdf
US Army Corp of Engineers (USACE). 2018. “Unit Daily Values for Recreation, Fiscal Year
2019.” https://planning.erdc.dren.mil/toolbox/library/EGMs/EGM19-03.pdf
Addendum
Coronavirus Impact & Recovery Addendum
June 2020
_______________________________________________________________________
The coronavirus pandemic has pushed the world into a recession which appears to be “worse
than the global financial crisis” according to the International Monetary Fund. Observers of
America’s economic shutdown are calling it the Great Pause, a near cessation of economic
activity. A report by McKinsey & Company suggests that we might be in the midst of the largest
drop in consumer demand since World War II. Unfortunately for the Whirligig Park and the
downtown revitalization efforts, some of the hardest-hit sectors are tourism, community events/
festivals, restaurants, retail, accommodation, and entertainment. Air travel in the United States
has dropped by 95 percent. Public events, festivals, and gatherings have almost completely
ceased. Many unknowns remain including how long the health and economic crisis will last.
Research by several groups indicates that the states likely to experience the sharpest
economic decline are those where travel and tourism is most important: Nevada, Hawaii, and
Florida. These states might also have the potential for the greatest turnaround after the crisis
has subsided, but such a rebound is not assured. North Carolina has not been ranked at the
top (or the bottom) of these economic decline forecasts.
Hotel and retail properties will be under considerable pressure, and chains might close weaker
locations. Commercial real estate loan analysis by Trepp estimates that the loan default rate for
lodging properties could soar to 35 percent, and for retail properties to 16 percent (while other
26
types of commercial property loans would have default rates no higher than 4 percent). Small
businesses in general will likely see high rates of closure – a Drexel University researcher states
that the average small business has enough funds to equal 27 days of cash flow. At the least,
retail and restaurant tenants are likely to need rent reductions or abatement in order to stay
afloat.
The most significant impacts on the American economy has been the dramatic rise in
unemployment and reduced incomes. Moody’s economist Mark Zandi estimates that 80 million
jobs (more than half of the nation’s total number of jobs) could be affected by layoffs, furloughs,
hour cuts, or wage cuts. Leisure and hospitality jobs head his list. Various reports suggest 10
million or more vulnerable positions in food and beverage services, accommodation, travel, and
attractions. Retail store jobs are also at great risk.
Reopening the economy has not been a guarantee of activity. Consumers and workers are still
showing caution, keeping demand for non-essential services low. If this trend continues,
personal and business finances can continue to be strained and contribute to a slow recovery.
Most economists believe that these businesses that must operate within close proximity will not
be able to return to pre-epidemic levels until there is a vaccine. What is expected between now
and a vaccine is a “Masked Economy” operating at about 80 percent of capacity.
For the Whirligig Park, which receives many visitors from both outside the state and within the
state and region via car travel, adjustments in behavior might not affect it as much as other
attractions. Many Americans might shun air travel, cruises, theme parks, and foreign
destinations in favor of closer-to-home attractions reachable by car. This represents an
opportunity to market the park to as a regional attraction and generate even more visitors.
A more difficult issue could be the survival rate of local small businesses such as restaurants
and retail shops. For Wilson to benefit from the park, it needs a critical mass of places for
visitors to spend their money. Attrition from businesses unable to survive the coronavirus crisis
would slow the positive momentum that downtown Wilson has experienced since the park
opened.
Utah is stressing the need to “keep business of every kind operating” as much as possible and
is praising local governments that delay business license renewals or ease business sign
regulations. To help small businesses get through the crisis and recover afterwards, researcher
Bruce Katz suggests the creation of “economic stabilization teams” including local governments,
small business owners, banks, landlords, chambers of commerce, and foundations. These
teams could work out the details of short-term relief such as reduced rent or lease extensions,
deferred mortgage or loan repayments, utility bill and tax relief. Longer-term, these groups can
develop joint strategies to help small businesses access financing and other resources, and
fine-tune Wilson’s marketing program to appeal to visitors during the Next Normal era.
Another threat to the Whirligig Park during this time is the resilience of the non-profit that
manages the park. Much of their funding comes from donations from businesses and individuals
in the community. If the community is struggling financially, donations to the park might be
down. As this report shows, the park helps bring business to the town, if the park begins to
struggle to raise funds to operate the park, the benefactors of the park may need to contribute to
keep the park running.
27
Finally, communities and attractions can take steps to increase consumer confidence.
Richmond Federal Reserve Bank President Tom Barkin notes how important TSA airport
security screening was in reducing fears after September 11, 2001. TSA screening may be
cumbersome, but Barkin believes it was “crucial” in restoring confidence in flying. Similarly,
Wilson businesses and governments can boost the public’s confidence now. Possible steps
include use of masks, gloves, frequent deep cleaning, quickly sending sick employees home,
spacing requirements, and limiting the density of crowds in restaurants, bars, and at the park
itself. Visible displays of prudence like these can reassure visitors and area residents that it is
again safe to enjoy downtown Wilson and the whirligig park.